If you’re a homeowner and you’re in foreclosure, you will most likely want to know your rights. Unfortunately, you have very few rights outside of what is allowed by your state’s laws and these laws primarily deal with specific time frames that a lender must follow during the foreclosure process.
Understanding your states laws and the time frames allowed under them, will give you the information you need to make an educated decision about the best way to proceed.
Many websites offer various free foreclosure help and describe the various states law’s. Our home loan forum has over 17,000 members and has helped over 300 homeowner save their homes.
After you have stopped making your mortgage payments for a period of time (typically 90 days or more) that is usually when your lender will start foreclosure proceedings with the court. The purpose of this is to follow your state’s laws in order to take complete ownership of the property which serves as collateral on your mortgage that you are defaulting on.
At this time (depending on your state) a notice of default or NOD will be filed. Your lender must provide you with a written notice of that intention. Please keep in mind that you can still contact your mortgage servicer and work out some type of loan modification at this time and you also have the right to pay back all past due amounts along with the late fees and other penalties.
Throughout the foreclosure process the homeowner has the right to be treated fairly. Any money that is earned on the sale in excess of the amount owed on the mortgage, late fees, penalties and foreclosure costs should go to the homeowner.
What you need to know!
Simply calling your lender and getting a loan modification or paying all past due amounts can stop the foreclosure process, but not always. Be careful because the foreclosure conveyor belt rarely stops moving and it’s not over it’s over. Many times homeowners are amazed that they end up losing their homes when they have been trying to obtain a loan modification for months. Unfortunately, they were under the false assumption that the process had stopped, when in fact it never stops!
I am not an attorney and this is definitely a legal situation, so it is best to contact an qualified attorney in your state that can help your or at least guide your in the right direction.
Have you ever heard of redemption? I have and I believe in it 100%. Good news is that is about 50% of our great nation’s states agree with me. This is a statutory right that allows you to regain ownership of your home by buying it back after the property has been foreclosed. Usually, this right must be exercised within 6-12 months of the foreclosure sale.
Sometimes, foreclosure is inevitable. However, the unpleasantness of the experience can be minimized if the homeowner is aware of his or her rights.
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{ 14 comments… read them below or add one }
This is a most unfortunate situation. I did not know about it, and I am grateful to you for bringing it to our attention.
My bank is fighting my automatic stay because I filed for bankrupcy as well. They never tried to help me modifiy the loan. I heard that the government is wanting banks to offer homeowners a modification. Why is it up to the servicer? Does she make commission on the loans?
I have perfect credit and applied to refinance my loan with Bank of America (took over from Countrywide). They charged me a $500 application fee – something I have NEVER had to pay before – to get a refi with the same place that holds my loan. I signed the papers on May 22 and mailed them back. They have still not gotten back to me for the refi and they stuck additional charges on the GFE that were junk fees! I have left messages for supervisors, emailed them, etc…and no one will call me back. They kept my $500 and approved me for the refi but will not bring it to close!!! HELP!
B/A gave us a Modification Agreement with new interest rate & loan payment which was due 9/1. Problem is when I sent in the new modified payment, they said it goes into another account & not against my present loan. It will take about 3 months for the payments to be credited to our loan. I am concerned because in the meantime our loan will show a delinquent amount each month.
Can they then file foreclosure? They will not provide any information in writing explaining anything.
OUR HOME LOAN WAS TAKEN OVER BY BANK OF AMERICA
WHILE WE RE IN FORBEARANCE. NOBODY WILL GIVE US A STRIAHT ANSWER. HELP!!!! HELP!!!! WE NEED HELP
CALL US AT 1-425-634-7917 OFFICE 9-5 PACIFIC TIME OR
HOME 360-794-9283 AFTER 6:30 PM
Bank of America is not cooperating. The process is extremely slow.
Bank of America is not working with me either. Seems they do not have to, they already received their money. I have been trying since April 2009. Can you say run around? lies? What can I do?
Hi,
I am new here and have spent the past two days reading – it’s a great resource to have found this site and to have read your stories, to see that I am not the only person who is going through this nightmare.
I apologize for the length of this, but wanted to tell my story and see if anyone has been here and knows what I can do.
I have been trying to get a loan modification with Bank of America since July, 2009…. This is the status of my case right now:
1. It took until October for them to have “received” my information, as the first two people I spoke to listed different criteria and the second gave me the wrong fax number to sent it all to – I only found this out when I had called after about a month (after second submission of documents) to see what the status was, if I needed to do anything. They then gave me another list of documents and the correct fax #.
2. Received letter in October that they received my information and would inform me within 60 days of any information.
3. Called about a week ago, the woman on the phone told me that there was no information. As I am pretty desperate at this point since my home has been in foreclosure for months as BAC told me NOT to make any payments, and she told me that if I sent any payments, they would return it, as my home is in foreclosure status, and that I just need to wait. Also told me that a negotiator was assigned at the end of December.
4. Called again today, as I received a notice in the mail (and also saw it posted online for anyone to see) notifying me that I have until 2/22/2010 to notify the court (myself or via attorney) with an appearance if I am entitled to the Servicemember Civil Relief Act (which I am not) and think I have a right to object to the foreclosure.
5. Called BAC again, and the woman I spoke to today told me that I am IN A TRIAL PERIOD that started January 1, 2010 – that was when my first trial payment was due! It is for 3 months – so I paid the amount that was due the first, and scheduled payments for 2/1 and 3/1.
6. I asked why I wasn’t notified, and was concerned that I didn’t get this information – she told me the documents will come within 45 days of January 1st – to notify me of the trial period. What I am confused about is why – at that point two of my trial payments would have been outstanding. Since I was not notified, they accepted my first payment late as on time (she said).
7. I told them about the notice I received, and she said that the foreclosure date was pushed out to 3/10 – which is after my 3-month trial period “ends”. And supposedly a decision will be made. If this is true, why was this document delivered to me YESTERDAY telling me that I have until 2/22/2010 before I lose my home, especially if my TRIAL period started January 1?? This court decision was just delivered.
The problem is that I have no documents to back this up. I can’t confirm besides the word of the phone rep of the day that my foreclosure date was postponed. Do I call a lawyer? Do I call the lawyer of the “plaintiff” (which is listed as BAC) to notify them that it was postponed?
I don’t understand the trial period – if they are giving me a trial period, and I make the payments on time, I am still going crazy at the possibility that they may reject the modification. If you succeed in making your payments during the trial period, how can they still deny you, and if so what was the point?
If they deny the loan modification, will they demand the full amount owed since you stopped making payments (at their advice), or will they just go back to the previous monthly payment amount, and roll the rest of it on top? I owe $16,000 since I stopped paying – at this point if I am not approved I will be out on the street. I have lived in my home 3 years, am 30 years old and alone, and am a first-time home owner. This really is my worst nightmare.
Given the court notice, and the trial period information that I only stumbled onto by accident because I called them twice this month hoping for some information, what should I do now? How can I be sure that the “postponement” of my foreclosure is for real? From this notice, it does not look like the city knows about it. How do I respond to this court notice – what should I do?
I appreciate you reading this, and from someone who has not been able to sleep in months and is pretty much stressed out to the max now 24/7, I hope that you all have the best of luck with this horrible nightmare and that we are all able to stay in our homes.
Thanks,
Jax.
Please go to my forum at http://www.LoanSafe.org/forum and share with thousands of other Bank of America clients who can help you.
I am sorry to hear about your nightmare Jax. Writing out your feeelings and issues does help ease some of the stress. I have a forum with 25,000 homeowners who are sharing tips and help with one another. I suggest you join the community at http://www.LoanSafe.org/forum and journal your story there so it helps you cope with the stress. That way you can let it out daily and it will help you sleep better.
I wish you the best!!!
Hi Moe,
Thanks – Sorry I posted in the wrong forum, I’m just trying to find out which info is correct so I can make sure I am doing everything I need to.
Thanks!
Jax.
Please tell me more about the statutory rights listed above about the right to take back ownership after foreclosure!? Is this only accomplished with a new mortgage? If so I won’t get above by any bank for a new mortgage within such a quick time frame. I have been in a forbearance with Chase since 2/09. Made all payments on time, than New Year’s Eve I recvd two denial letters. They say I have insufficient income for amount of monies I need. When I recvd the final payoff from them, my mortgage went up 63k since I’ve been in forbearance. At the same time they only used income submitted up till june ’09, yet they were always asking for updates. The last updates were given to them in sept. and I verified more than once they had recvd them. I can not find a local attorney that deals with loan mods. Someone please help!?!?
Bank of America Barbara Desoer the Advocacy Department I promise is just BS they are PR for the next 3 or 4 months and then nothing happens! Somebody has got to get this to the media they stall until the auction sign is on your house and then deny the modification and drive you to bankruptcy! We have got to get them where it hurts! Give them the publicity they deserve!
We have (had a beautiful home) but when I was laid off I could not make the mortgage payments. After notifying the loan holder they would not work with me and after we went into forebearance by making some payments they stopped communicating at all and began to send our payments back. When they did answer our calls a couple months later, we began a modification plan, but our contact went on vacation and turned the work over to her supervisor who, when we spoke with her was harassing and completely rude telling me I am a horrible father for being laid off and not caring for my children and that when the Sheriff comes to kick us out she hopes he arrest me too! I was flattened by her comments and that was in January and it still eats at me. We found out that while we were discussing the modification plan they had already sold our home to an investment company and we never would have been able to retain ownership anyway!
We contracted with an attorney who apparently just is enjoying our money too and did nothing to help after feeding us a song and dance about what a great chance we have to stop the foreclosure.
When will the Government step in and start arresting some of these big bankers for fraudently ruining the lives of so many Americans?
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